"That corresponds with the level of sales in the Mount area. There's a number of properties there which were on the market for three years which have been snapped up in the last three months. There's more momentum, more confidence in the market."

Mr Gordon said many Mount Maunganui properties had fantastic views and good section sizes. This was harder to come by in newer developments.

"I think it's some of the best coastal property in the world, not just New Zealand, and the architecture should really respect that.

"People are spending a considerable amount either renovating or just rebuilding. There are some 1970s and 80s homes which are getting some serious birthdays.

"A lot of the time what we are doing is bringing them up to date, opening them up to the outside, creating that flow."

However, in some cases it was better to rebuild, he said.

"Sometimes there are false economies to renovating because of the restrictions it places on you."